Some California hospitals have reacted to the passage of health care reform by seeking to organize and operate so-called “1206(l) medical foundations.” CMA is receiving an increasing number of questions from physicians concerning what these medical foundations are, and what considerations should influence their decision to join. This document is intended to provide a general overview of the legal and practical issues that present with medical foundations, and the following discussion is organized into four (4) sections: Background, Legal Considerations, Key Practice and Business Considerations, and CMA Resources.